What to read from PE ratio?

Reading Time: 2 minutes

PE ratio, stands for the stock price vs. earning per share ratio, is the most commonly used (and mis-used) ratio in the investing world. I saw this PE ratio question at trader168 couple days ago, the question goes like this:

BX P/E: 1.97
MSFT P/E: 21.15
JAVA P/E: 46.01
BIDU P/E: 195.95
VMW P/E: 268.98

Why the big difference on PEs from difference companies? Is that true that we should not compare PEs from different industries? (my take: that’s true)

Is PE a still usable indicator? (my take: yes. If used properly)

China Stocks

Ticker Symbol of Chinese Banks

Reading Time: < 1 minute

Symbol  Name     Price (Apr 26)   Earning (2006)

600000 浦发银行 28.28              0.77

600015 华夏银行 13.29            0.35

600016 MingShen 13.27        0.38

600036 CMB      20.04           0.48